7 Best Short-Term Investments for Growing Your Money (2026)

Saving money on short term investments growing does not have to be complicated. We rounded up the essentials so you can spend less and skip the guesswork.

Key Takeaways

• 7 Best Short-Term Investments for Growing Your Money You have some money to invest, but not a whole lot of time.
• What are the best short-term investments to maximize your returns?
• These short-term investments can help you make the most money with the time you have.

7 Best Short-Term Investments for Growing Your Money

You have some money to invest, but not a whole lot of time. What are the best short-term investments to maximize your returns? These short-term investments can help you make the most money with the time you have.

Written by Zina Kumok Last Updated: April 1, 2025 Reviewed by Jeff Proctor

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You have some money to invest, but don’t like the idea of not touching the money for years or decades.

What are the best short-term investments to maximize your returns?

Most frequently, people in this situation are saving for a short-term goal , a down payment on a house, shiny new car, or planning for kids in the not-too-distant future.

You don’t want to leave your money sitting around in a low-interest savings account making mere pennies a month. However, you also don’t want to take on a excellent deal of risk since that’s money you’re planning to use in the next few years.

Short-Term High-Yield Investments

Putting your money into short-term high yield investments can be the perfect compromise between earning basically 0% interest and taking bigger risks with long-term investments. Don’t worry, I’ll explain exactly where to invest money to get good returns and also give some short-term investment examples along the way.

What Constitutes a Short-Term Investment?

When most people think of investments, they think of things like stocks, bonds, 401(k)s, and IRAs. These types of investments and investment vehicles are typically part of a long-term investment portfolio used to fund goals like saving for college funding retirement. They frequently mature for decades before they’re cashed in for their intended purpose.

A short-term investment, on the other hand, grows for several months to years. Once it matures, the investment can be cashed in for its full value. Therefore, if you know you’ll need your funds in the next 3-5 years or sooner, short-term investments are typically the way to go.

Are Short-Term Investments Risk-Free?

Short-term investments typically carry far less risk than long-term investments, but that does not mean that they are completely risk-free.

If you’re relying on your money being there when you need it in a few short months or years, it makes sense that you would want to take on as little risk as possible. However, even some of the best short-term investments come with some degree of risk.

That said, you can still manage your risk by choosing the right options for your situation.

As with most types of investing, the less risk you take, the less reward you will frequently receive.

The Best Short-Term Investment Options With High Returns

Now that we’re on the same page with what short-term investment options with high returns are and the risks involved with any investment, let’s take a look at how to start investing your money short-term for the best combination of returns vs. safety.

1. Online high-interest savings accounts

Time Span: Indefinite

Return: 0-2.50% APY

When it comes to investing young, savings accounts aren’t the most lucrative option.

However, if you want access to your money at any time and to maximize your returns, high-yield online savings accounts are a excellent option.

Every bank offers FDIC coverage up to $250,000. As long as your account stays below that amount, you’re guaranteed access to your money even if the bank fails, which is highly unlikely.

It’s not uncommon to see some of the best savings accounts offer interest rates that are more than 5-10 times the national average. With no monthly fees and low (or no) minimum balance requirements, you can withdraw your money at any time without closing your account.

With inflation currently around 2.4%, you’ll still lose purchasing power with this short-term investment strategy (i.e., inflation is greater than your return).[1] However, you’ll still see a higher return than keeping your money in a lower-interest savings account.

Related: 15 Expert Tips for Beating Inflation

2. Money market accounts

Time Span: Indefinite

Return: 1-2%

Money market accounts are a hybrid between a checking account and a savings account. With a money market account, you can write checks and make withdrawals. However, you may be required to keep a higher minimum balance to avoid incurring fees.

Newly opened money market accounts typically offer higher interest rates than savings accounts. Restrictions on the number of withdrawals allowed within a given period of time make them less liquid than a checking account but more liquid than a CD, and with comparable interest rates.

3. Certificate of deposit (CD)

Time Span: 3 months to 5 years

Return: 0.5-3%

CDs are another excellent option for short-term, high-yield investments.

With certificates of deposit (CDs), you give up flexibility in being able to access your funds in exchange for a higher return. CDs are essentially a loan you give to a bank. They come with a fixed interest rate and a determined maturity date, at which you’ll receive access to your original investment plus the accumulated interest.

You can still withdraw your money from a CD at any time. However, doing so will incur an early withdrawal penalty, the amount of which varies depending on the bank.

The length of CDs varies from 3 months to 5 years. The longer you’re willing to part with your money, the more interest you can earn.

4. Take advantage of promotional deals

Cash-back rewards aren’t what most people imagine when they think of short-term investments. However, taking advantage of these promotional offers is an simple way to make money in a short period of time.

Numerous rewards credit cards offer a bonus of some sort when you sign up and spend a certain amount within the first three to six months. For example, the Capital One® Venture® credit card offers a 50,000-mile bonus. In order to qualify, you’ll need to spend $3,000 in the first 3 months of opening your account.

Those 50,000 miles translate to $500 in travel. Not a bad investment for minimal effort.

We don’t recommend racking up credit card debt just to collect bonuses. However, if you only use your new card for expenses you’d be paying for anyway (food, groceries, gas, utilities, etc.), and pay it off every month, then it can be a decent short-term investment opportunity.

Another promotional offer to look out for is bank account bonuses. Oftentimes, banks will offer promotions for new shoppers who open an account and sign up for direct deposit or deposit a specified minimum within a certain number of days.

These rewards range from $100 to $400+. Right now, Chase is offering a $350 bonus to new shoppers.

Qualifications include opening a checking account and setting up direct deposit ($200 bonus), opening a bank account online and depositing $10,000 of “new” dollars (not from another Chase account , $150 bonus).

5. Municipal bonds

A municipal bond is issued by a local, state, or government agency and used to complete public projects like building highways or new schools.

These short-term high-yield investments (well, depending on the bond) are backed by the government entity that issues the bond, and interest earned is typically exempt from federal taxes.

There are two types of municipal bonds: revenue or general obligation (GO). Revenue bonds are backed by a specific revenue source, such as hotel tax or toll road fees. General obligation bonds, on the other hand, are not backed by a specific project.

Although it’s possible for the issuer to default on the bond, the chances of that happening are relatively low, especially compared to corporate bonds. The risk is associated with interest rates.

When interest rates rise, the value of a municipal bond decreases. When interest rates decline, the value of a bond increases. Longer-term bonds are more susceptible to fluctuations in interest rates. Therefore, the shorter the maturity date, the less risky your investment.

One of the best investment apps on the market, Ally Invest, offers an simple and straightforward way to invest in municipal bonds.

6. Peer-to-peer lending

Time Span: 3-5 years

Average Return: 3-8% per year

Where To Invest: LendingClub

Peer-to-peer lending involves loaning money to individuals and businesses outside of the traditional banking and loan system. This is typically done through online platforms that connect borrowers with lenders. There are benefits on

Final Thoughts

The bottom line: a little research on short term investments growing goes a long way. Compare your options, watch for seasonal offers, and never pay full price when a better deal is one click away.

Originally published at dollarsprout.com.